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tv   Real Money With Ali Velshi  Al Jazeera America  August 26, 2013 5:30am-6:01am EDT

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switch your phone off. we live in an ever connected world, the question is at what cost? and phil with al jazeera london. >> reporter: that story and the rest of the day's news can all be found on our website that you can see on your screen there. >> obama is going to fundamentally change the way you receive healthcare and real money is going to be your best source to find out how, and first i will take you to the state with the fewest doctors per capita and a place obamacare may not help and college has sky rocketed and so has the salaries of president and one man who has not turned his back on detroit and they see opportunity where others see a dying city and this is real money.
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[[voiceover]] every sunday night, al jazeera america presents gripping films from the world's top documentary directors. >>thank god i didn't suffer what
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he had to go through. next sunday, the premiere of google and the world brain. >>this is the opportunity of our generation. [[voiceover]] it would be the world's greatest library under one digital roof. but at what cost? >>google could hold the whole world hostage. [[voiceover]] al jazeera america presents google and the world brain. my name is jonathan betz. i'm from dallas, texas, and i'm an anchor for al jazeera america. >>my name is ranjani chakraborty, i'm from houston, texas. >>i'm kim bondy. >>nicole deford. >>and i'm from new orleans. >>san francisco, california. when i was a little kid, i just really loved the news. >>news was always important in my family. >>i knew as a kid that was exactly what i wanted to do. >>i learned to read by reading the newspaper with my great-grandfather every morning. >>and i love being able to tell other people stories. >>this is it, i want to be a part of this. >>this is what really drove me to al jazeera america.
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mission. >> there's more to america, more stories, more voices, more points of view. now there's are news channel with more of what americans want to know. >> i'm ali velshi and this is "real money." this is "america tonight." sglovrjs our -- >> our news coverage reveal more of america's stories.
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>> it is no secret that the soaring cost of a college education is a financial burden for america's middle class. president barack obama proposed creating a new system to rate colleges on how much value they offer students based on graduation rates, loan debt and tuition. he wants congress to tie federal aid to colleges on how well they score. this is all designed to make college more affordable. whether the president's plan goes anywhere in washington is far from certain but there is no doubt that outrage over tuition is focussing more attention on the pay and perks awarded to university presidents. some critics say that the
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tuition may fall if university presidents were not paid so much. but as reported, the pay of college pst have to do with raise. >> kayla smith waits tables at night after working in a downtown columbus office for a non-profit group. >> if you need anything -- >> it is the only way she can payoff the 40,000 dollars in student loans that came with her degree. the recent ohio state university grad is one of a growing number of people outraged, salaries of rising. >> it does make me very angry. >> the median pay for a public university president reached 440,000 last academic year up 4.7%. the highest paid was former penn state president who pocketed nearly $3 million after leaving them in a scandal. ohio state university, retired with a final pay of nearly 2 million. >> i don't
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think that they're necessarily worth that much. >> overall, roughly 35 public and private college presidents earned more than a million dollars last year. these academic leaders typically run very complex r prices with major research teams and sport teams like the ohio state buckeyes. >> california lawmaker yi has been leading a charge against executive pay at universities for years now. >> executives coming in to the system, they were being paid 400,000, 300,000, they were being paid more than the president of the united governor. >> the outrage is fanned by perks as well as pay. ou's president entertained gusts and lived in this mansion owned by the university complete with tennis court. >> it is tee routine to have house keeping, club dues, free travel for wifes and we have seen cases where presidents
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are given additional money to make charitable donations. >> at first glance it is understanding and similar to the corporate world. unlike the corporate world where stock prices are a good mush of success there is little agreement on how to best determine presidential pay at universities. >> these are tax exempt institutions, they're supposed to serve a broder public good. they're not corporations, they're not-for-profit. there are no stock options. >> falling state funding has forced schools to increasingly rely on alternative financing and leaders that know as much about money as ac academics. the leaders don't come cheap. >> the market has gone up for the best and brightest who cannot only lead but also way. >> dale jones helps colleges and university hire administrators who have what it takes to raise that money. >> some have bought real estate holdings and
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some have had patents -- >> osu's gee was a star of the college fund-raising world. osu officials wouldn't speak on camera but the board of trustees says he took the university to "new heights" helping to raise more than 1. 1.$6 billion so that today only 15% of the school's revenue comes from state support. 29% from tuition payments and 56% from other sources, including business enterprises. under his leadership osu leased out parking lots for 50 years and made nearly 500 million cash up front. the st expects to earn about 3 billion in investment returns on that business deal alone. one way to look at pay is compensation per student. richard veter heads the center for college productivity and affordability. his analysis reveals that the average pay for a public university president is roughly $25 per student.
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using this metric, auburn st paid its president the most, roughly 111 per student. ohio state university with its more than 50,000 students paid student. >> i don't think that they're necessarily worth that much but they can get away with it. >> head hunters and critics agree, competition for the men and women that lead universities will grow along with their pay. columbus, ohio, al jazeera. >> there are indication indicat some universities are becoming sensitive to the public backlash over executive compensation. an increasing number of schools, including ohio state, are paying presidents with money from private foundations. perks are being cut too. recently new york university announced it will no longer loan employees money to buy vacation property. the university had come under fire for issuing a mortgage to its current president so he could buy a beach house. so, what do you do if you're
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one of the 38 million americans that owe an average of 24,000 on your student loans, stacy found a way to payment. >> this attorney works for a non-profit organization called the legal aid society of the district of columbia where she helps people with low incomes settle housing disputes. >> to be i've to give a voice and have them assert rights is rewardingy. >>rewarding. >> sheila graduated 6 years ago with 80,000 in student loan debt and believed making the loan payments would mean making life altering sacrifices like missing out on family. >> the cost of my debt would be possibly 800 to 100,000 a month. when you think about 800 to 1,000 a month in addition to really high cost of living in dc, in addition to all of the other monthly expenses, utility bills, transportation,
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which can be costly, that makes it difficult to think about adding on another cost mouth. >> soon after finishing law school shirley heard about the government's public service loan forgiveness program. it started as part of the college cost reduction act of 2007. the program allows a large chunk of your student loan debt to be completely forgiven service. >> so, the federal government says people are doing this incredibly valuable work that helps other people in our country and in return we're forgiveness. >> here is how it works, you must have a federal direct or family education loan commonly known as a fel loan. he have to work at ten years for any non-profit organization or for the federal, state or local government and make 120 monthly loan payments. neither the work nor payments have to be consecutive and can be spread out over longer periods of time. >> nobody can earn forgiveness until 2017. the department of education
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hasn't even created the apply. >> making matters even more complicated you need to track and report your employment over a decade or more and keep all relevant tax documents and pay stubs. >> there is a maintenance requirement on your part to stay enrolled. that may be too much of a hurdle for some people. >> you must also enroll in the government's income based repayment program to get the public service loan forgive . the program reduces monthly out-of-pocket expenses but the interest on your loan keeps growing. that means if for some reason you don't complete ten years of public service you may actually end up with more debt. shirley feels it was worth the trouble. between public service loan forgiveness and income based repayment plan she'll be debt free in five years. without the programs, she would not finish paying off her loan until 2037. >> they allowed me to have the career i want to have, to help people that need my help and
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to not have to worry on a personal level of my own financial situation on a day-to-day base. >> allowing her a different life than if she spent decades struggling with student loan debt. >> in addition to the government's public service loan forgiveness program stacy told you about, there are programs that offer loan subsidies for teachers, healthcare workers and those with military service among others. detroit is realing after going flew the biggest city bankruptcy in u.s. history and while a lot of people are writing off motown, not so for the man you will next meet. he thinks detroit can save itself one neighborhood at a time. what he's doing could be an inspiration for struggling cities everywhere.
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what happens when social media uncovers unheard, fascinating news stories? it drives discussion across america. share your story on tv and online. can you say stocktopussy?
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[[voiceover]] every sunday night, al jazeera america
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city to file for bankruptcy protection. the people living there have had to deal with problems like burned out streetlights that aren't replaced. garbage that's picked up intermittently, vacant homes, all kind of problems. where many see a dying city, this detroit entrepreneur sees opportunity. this motown maverick believes detroiter s save the city one neighborhood at a time.
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our patricia sabga explains. >> yo you could call him a hand on entrepreneur. >> i work with concrete, metal, wood. i stay away from electricity. way. >> he buys old buildings in detroit in disrepair, fixes them up and starts businesses. right now he's working on his latest venture, pony ride, a collective of almost 40 entrepreneurs and non-profits based in this 30,000 square footwear house including several textile companies and a hip-hop dance studio. >> people are so afraid of detroit they wouldn't open up business here for the longest time. we see when detroiters are allowed to participate they'll do incredible, great things. >> he bought his first building here in this neighborhood for 40,000 a decade ago. he moved here after a stint as an international model. >> if you can imagine, besides that, everything else was
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boarded up, no windows, everything abandoned. >> he ed in the abandoned building and slowly renovate construction. >> it was rough. my first front door was a piece of plywood and a screw gun and screws. together with a few friends phil opened up slow's barbeque in the renovated space. slow's is thriving. now it employees more than 150 people. next year cooley will open another restaurant on the same block adding another 60 jobs. in fact, slow's is so successful cooley says he could have retired but he believes the key to his success is helping others. >> for us to be long-term successful -- for slow's to be around for more than just -- it has been eight years now, we think we need a healthy community around us. >> two years ago cooley bought the foreclosed warehouse that became ponyride for 100,000. >> are you here today? >> he renovated the warehouse himself and has spent 200,000
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to whip the place into shape. he keeps costs low relying heavily on volunteer labor which also keeps rents low. >> we were at 25-cent as square foot which is about a 75% rent reduction for market rate. >> eric bases his hand made jeans company detroit denim from pony ride. he says he never could have started his business without phillip cooley. >> i would have been a plumber, a roofer, i would have been 20 different things before making the fist pair of jeans. to actually come in a phenomenal. >> something that cooley wasn't expecting, entrepreneurs working together. gabe rallying suppor together. >> gabe is making belt buckles for detroit denim, a way he's expanding the business. >> that's something that we never would have thought of making on our own he says that there is an entrepreneurial momentum happening right now that many people don't expect in detroit. >> most of the demand for the
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things that we're making by hand comes locally. i think that that doesn't really square with the national narrative of detroit being this impoverished and mismanaged place. >> his experience in detroit paints a different picture than statistic statistics. in 2012 detroit had the lowest entrepreneurial rate compared to miami. the statistics don't represent what cooley is seeing in his neighborhood. ponyride helped create more two years. >> we have probably triple that, triple the amount of businesses in the last 11 years and it will quadruple in the next year alone. >> cooley's commitment to creating a community where businesses can flourish includes ping up this park. >> it is what green space to get to but it is a place where people can gather, communicate, work and play together. the idea that we can make a difference is really important. the city was
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built out of hard work. that's probably what's going to rebuild it. >> detroit will save itself. it is doing it every day. i think we can learn from the past. >> patricia sabga, al jazeera. >> he has big dreams for pony ride, running it like a non-profit, he wants every neighborhood to have its own version. he's planning a on-line blueprint with resources, financial, everything to help other parts of city support their local entrepreneurs. , >> before i go, let me leave with you final thoughts. real money is unlike any other money show on tv. it is not focused on investors or solely on your personal financial concerns. it is bigger than that. i'll let you in on important news and trends and show you exactly how they can effect your own bottom line. on any day those trends may be about stocks or housing or
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jobs or energy or education or healthcare. in fact, i want this to be the place you choose to come to understand obamacare and all of its implications. i'll also warn you of dangers to your money. i'll give you access to people and ideas that you want to know about. i promise to make this show about you and for you every day. that's our show for today, thank you for joining us. i'm ali velshi. see you next time on "real money."
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♪ . >> announcer: this is al jazeera ♪ hello there and welcome to the news hour, i'm in doha, the world's top stories in the program, un inspectors visit the weapons attack near damascus as u.s. may have military actions. families detained in the anti-coup protests tell al jazeera they are concerned about their relative's safety. fresh allegations of sexual misconduct of the trial of chinese